The euro today dropped to new lows against the US dollar after the release of weak German preliminary CPI data in the mid-European session. Several disappointing releases from the US docket in the early American session could not reverse the euro’s decline against the greenback.
The EUR/USD currency pair lost over 100 points from a daily high of 1.2346 to trade at a low of 1.2242 at the time of writing.
The currency pair’s massive decline was triggered by the release of flash German Consumer Price Index report for February by the Federal Statistical Office in the mid-European session. The CPI estimate came in at 1.4% on an annualized basis missing expectation by 0.1%, which triggered the decline. The CPI’s monthly figure was in line with expectations by coming in at 0.5%. Earlier releases from the euro area such as the flash Eurozone economic sentiment report released by the European Commission, and the Eurozone business climate indicator, both of which beat expectations, had triggered a slight decline in the pair.
The new Fed Chair Jerome Powell‘s prepared speech and other US releases such as the advance goods trade balance released by the Census Bureau could not reverse the pair’s decline. The weak durable goods orders for January also had a muted impact on the currency pair.
The currency pair’s future performance is likely to be affected by tomorrow’s Eurozone CPI data, German employment report and the US fourth quarter GDP report.
The EUR/USD currency pair was trading at 1.2237 as at 16:00 GMT having dropped from a high of 1.2346. The EUR/JPY currency pair was trading at 131.61 having declined from a daily high of 132.18.
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